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Suggestive Selling in the Restaurant Business : a Framework Connecting Selling Approaches to Sales Encounter Outcomes. By Jean Lagueux Institut de tourisme et d’hôtellerie du Québec. Objectives. Three fold Define a framework of selling approach in the environment of restaurant selling.
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Suggestive Selling in the Restaurant Business : a Framework Connecting Selling Approaches to Sales Encounter Outcomes By Jean Lagueux Institut de tourisme et d’hôtellerie du Québec
Objectives • Three fold • Define a framework of selling approach in the environment of restaurant selling. • Measure the impact of the different sales approach on sales encounter outcomes. • Explore the restaurant / waiter’s social responsibility context
Selling Styles • Partnership selling • Adaptive selling • Cross-selling • Up-selling • Add-on selling • Value-added selling Suggestive selling Consultative selling Transactional selling Persuasive selling Seduction selling Relational selling
Suggestive Selling • Lacks • Proper definition • Theoretical basis • Based on : • Professional experience • Anecdotal evidence • Effects are not well defined
Background • Courtesy in a restaurant setting and suggestive selling (Brooks, 1961) • Factors influencing restaurant servers to use suggestive selling (Johnson & Masotti, 1986) • Definition : “asking a patron if he would like wine with the meal ordered” • Suggestive selling versus the volume of business (Redmon & Dickinson 1990) • Recommendations made by the server at different times of the meal (Lynn, 2003) • “the art of selling a customer the original item he or she came in to buy, plus additional items that complement the original item” (Kizer & Bender 2007) • 70 % of 1066 restaurant servers use suggestive selling (Lynn & McCall, 2009) • Conclusion • Economic benefits • Not connected to customer’s needs
Consultative Selling • Type of awareness attributed to restaurant servers • Mars and Nicod (1984) • Customer-oriented selling : • Comes from the marketing concept • Customer satisfaction is integrated in the equation of success • Seen as a problem solver • Saxe and Weitz (1982) • Providing information - an advisor • Job satisfaction, organizational commitment, sales training and sales skills • Liu and Leach (2001)
Consultative Selling • Approach used in situations when a customer needs to find a solution to a problem that has not yet been resolved or when he needs help or a suggestion • Zeyl (2003) • Upselling technique that has the goal to increase the average check while enhancing the guest experience • Shock, Bowen, and Stefanelli(2004) • Conclusion • Difficulty assessing customer’sneeds • Specific needs have not been satisfied • New approaches can be suggested to him
Transaction Selling Products are well known to the customer (Zeyl, 2003) • Large amount of information available to the customer • Previous knowledge • The use of salespeople is less required • To describe features • To take orders
Persuasion Selling • Manske and Cordua (2005) • Use of different approaches to persuade • Reciprocity • Scarcity • Liking • Credibility • Power • Similarities • Physical attractiveness • Empathy • Extrinsic aspects of the purchase situation.
The Server Self-Monitoring Adaptation in response to the perceived differences (Snyder, 1974) Motivation to alter the behavior Theory of social exchange (Thibaut & Kelley, 1952) Cost of effort versus personal gain Adaptive selling Empathy Androgyny Being an opener Locus of control Self-efficacy Service Predisposition (Lee-Ross, 2000)
Selling Environment Differences with retail settings • Sequence of service (McMahon & Schmelzer, 1989) • Roles and responsibilities • Simultaneity • Contact points • Captive aspect of the service encounter • The importance of the menu
What makes it suggestive ? • Bringing to active memory, options • Forgotten • Ignored • Unknown • Altered behaviour • Considering needs • Trying to persuade • Not simply related to presentation
Figure 1: Suggestive Selling High Consultative selling Customer Orientation Suggestive selling Transaction selling Persuasion selling Low Low High Sales Orientation
Figure 2: Effects of suggestive selling Consultative selling Variable Sales performance Higher Customer satisfaction Lower Persuasion selling Higher Variable Variable Transaction selling
Contribution Definition for suggestive selling Redefining the SO-CO in a service environment Contrasting sales to customer satisfaction in a new way
Conclusion Marketing my products Marketing to the customer Marketing with the customer